Question

TB MC Qu. 7-144 Keyser Corporation, which has ... Keyser Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $121

Units in beginning inventory 800

Units produced 8,700

Units sold 8,800

Units in ending inventory 700

__________________________

Variable costs per unit:

Direct materials $26

Direct labor $43

Variable manufacturing overhead $7

Variable selling and administrative expense $17

Fixed costs:

Fixed manufacturing overhead $69,600

Fixed selling and administrative expense $ 163,300

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. What is the net operating income for the month under absorption costing?

Multiple Choice

• $12,700

• $3,800

• $13,500

• $21,100

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.